UKGC Launches Review Of Evolution Gaming For Potential Misuse Of Games

Article by : Erik Gibbs Dec 26, 2024

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The UK Gambling Commission (UKGC) has launched a formal investigation into Evolution Gaming, raising concerns over the accessibility of its games on unlicensed platforms operating in the UK. The review could have significant implications for Evolution’s license to operate in the British market.

The inquiry was initiated after the UKGC found that Evolution’s games were available through unlicensed operators within the country. These platforms fall outside the UKGC’s regulatory oversight, potentially exposing players to risks such as unprotected transactions and a lack of accountability. Following the discovery, Evolution removed its content from the unlicensed sites and assured regulators of its full cooperation.

Martin Carlesund, CEO of Evolution Gaming, addressed the situation, emphasizing the company’s dedication to upholding regulatory standards. “Evolution embraces the objectives of the review by the Commission. We are committed to supporting the licensed UK market and preventing unlicensed traffic,” he stated. 

He also noted that the company is employing advanced technical measures, such as IP blocking, to ensure its games are only accessible through licensed operators in the UK.

The UKGC’s investigation could result in a range of outcomes. At one end of the spectrum, the Commission might determine that no further action is needed. However, more severe consequences could include financial penalties, additional licensing conditions, or even suspension or revocation of Evolution’s license.

The situation has already impacted Evolution’s financial standing. Following the announcement, the company’s share price fell by 11.8%, trading at SEK 806.80 (US$73.11). This decline reflects investor concerns about potential regulatory repercussions and the broader implications for the company’s operations in a key market.

Evolution has reiterated its commitment to working closely with the UKGC to address the issue. The company noted that it has taken similar actions in the past when flagged by the regulator, such as removing games from unauthorized platforms targeting the UK.

This investigation comes amid a period of growth and activity for Evolution. The company recently reported a Q3 revenue of €579 million (US$602.8 million) and extended its partnership with FanDuel. Earlier this year, it announced plans to acquire Galaxy Gaming for $85 million, signaling its ambitions for further expansion.

The UKGC’s investigation of Evolution aligns with its ongoing efforts to maintain strict oversight of the gambling industry. The regulator recently appointed Charles Counsell as its interim chair, signaling a continued focus on ensuring compliance and safeguarding players.

While the UKGC has not provided additional details about the review, it confirmed that it closely monitors Evolution’s implementation of the required measures.